What are the best green hydrogen startups?

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Six green hydrogen startups are dominating 2025 with breakthrough technologies, massive funding rounds exceeding $100 million, and strategic partnerships with industrial giants.

These companies are solving the core challenges of hydrogen production cost, storage safety, and industrial-scale deployment through proprietary electrolysis methods, liquid organic carriers, and thermal plasma technologies. Their combined funding of over $1 billion in 2024-25 signals that green hydrogen is transitioning from pilot projects to commercial reality.

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What are the most promising green hydrogen startups in 2025 based on funding, technology, and industry recognition?

Six startups dominate the green hydrogen landscape in 2025: Hydrogenious LOHC (Germany), Electric Hydrogen (USA), Hysata (Australia), Lhyfe (France), HiiROC (UK), and Hystar (Norway).

Hydrogenious LOHC leads with its Liquid Organic Hydrogen Carrier technology that enables safe hydrogen storage and transport at ambient conditions, solving the critical infrastructure challenge. The company secured €89.5 million in 2024-25, including a €72.5 million German government grant for the Green Hydrogen @ Blue Danube IPCEI project.

Electric Hydrogen achieved unicorn status with its $380 million Series B round, backed by BP, Microsoft, and United Airlines. Their HYPRPlant modular PEM electrolyzer platform delivers 60 tons of hydrogen daily at 60% lower costs than incumbent systems. Hysata raised $111 million for its capillary-fed alkaline electrolyzers that target 95% efficiency at 41.5 kWh/kg H₂, plus AU$814 million in ARENA Hydrogen Headstart funding.

Lhyfe secured €213 million across multiple funding streams in 2024-25, including €149 million from the French government for their 100 MW Le Havre plant. HiiROC raised £28 million for thermal plasma electrolysis that produces both hydrogen and valuable carbon black byproduct. Hystar obtained $36 million led by Nippon Steel Trading for ultra-thin PEM electrolyzers with 90% membrane thickness reduction.

These companies combine proprietary technologies, substantial industrial partnerships, and government backing to address the three critical barriers: production cost, storage safety, and deployment scale.

Which startups received major investments in 2024-25, and how much did they raise?

The funding landscape shows clear winners with Lhyfe leading at €213 million total, followed by Hysata's combined $925 million when including government programs.

Lhyfe secured the most diversified funding portfolio: €149 million grant from the French government for the Green Horizon 100 MW plant in Le Havre, €53 million debt financing from top-tier banks (Crédit Agricole, BPCE, HSBC, Crédit Mutuel Océan) for four production sites totaling 30 MW, and €11 million Klimatklivet grant from Swedish EPA for a 10 MW Sweden plant.

Hysata raised $111 million in Series B funding led by bp Ventures and Templewater, plus received AU$814 million through ARENA's Hydrogen Headstart program to support the 1.5 GW Murchison Green Hydrogen project. This represents the largest single program funding in the sector.

Hydrogenious LOHC obtained €89.5 million total: €17 million equity from AP Ventures, Temasek, Winkelmann Group, Covestro, Chevron Technology Ventures, and Anglo American Platinum, plus €72.5 million grant from German Federal Government and Bavaria for industrial-scale deployment. HiiROC raised £28 million (approximately $35 million) from Centrica, Kia Motors, and other strategic investors. Hystar secured $36 million led by Nippon Steel Trading with participation from Nysno, Arkwright X, and Aion Management.

The funding mix reveals a strategic shift toward government grants and debt financing alongside traditional equity, indicating sector maturation and reduced risk perception among institutional lenders.

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Who are the top investors backing these startups, and what are their investment strategies?

Corporate venture capital from energy and automotive giants dominates green hydrogen startup funding, reflecting strategic alignment with decarbonization goals and supply chain integration.

BP Ventures leads the corporate investor category, backing both Electric Hydrogen ($380M Series B) and Hysata ($111M Series B). Their strategy focuses on electrolyzer technology that can integrate with their renewable energy projects and provide hydrogen for industrial customers. Chevron Technology Ventures invested in Hydrogenious LOHC, targeting hydrogen storage and transport solutions for their global energy infrastructure.

Automotive manufacturers are heavily invested: Kia Motors backed HiiROC for potential hydrogen fuel cell vehicle applications, while United Airlines Ventures invested in Electric Hydrogen for sustainable aviation fuel production. Nippon Steel Trading led Hystar's $36 million round, seeking hydrogen solutions for steel production decarbonization.

Sovereign wealth funds show increasing interest: Temasek invested in Hydrogenious LOHC, and Oman Investment Authority participated in Hysata's Series B. Government investment arms like Bpifrance (Lhyfe), CEFC through Virescent Ventures (Hysata), and Swedish EPA via Klimatklivet (Lhyfe) provide strategic funding tied to national hydrogen strategies.

Technology-focused VCs AP Ventures and Templewater appear across multiple deals, indicating specialized hydrogen expertise and portfolio company synergies. The investment strategy pattern shows preference for startups with proprietary technology, clear industrial partnerships, and scalable manufacturing capabilities.

Which startups received the largest single investments, and what were the stated funding purposes?

Hysata secured the largest single funding commitment with AU$814 million from ARENA's Hydrogen Headstart program, specifically designated for the 1.5 GW Murchison Green Hydrogen project in Western Australia.

This funding aims to scale capillary-fed alkaline electrolyzer manufacturing and establish commercial hydrogen production at unprecedented scale. The project targets 1.5 GW of electrolysis capacity to produce hydrogen for domestic industrial use and export markets, with AGL providing offtake agreements.

Electric Hydrogen's $380 million Series B represents the largest private equity round, enabling construction of their 1.2 GW/year PEM stack manufacturing gigafactory in Massachusetts. The funding purpose centers on achieving 60% cost reduction versus incumbent electrolyzer systems through automated manufacturing and modular plant design.

Lhyfe's €149 million French government grant specifically funds the Green Horizon 100 MW plant in Le Havre, designed to supply hydrogen to industrial customers including Yara for ammonia production. Hydrogenious LOHC's €72.5 million German government grant supports the Green Hydrogen @ Blue Danube IPCEI project, enabling 1,800 tons H₂/year supply capacity and LOHC hub construction across Bavaria's hydrogen network.

The funding purposes reveal a clear progression from technology development to commercial-scale deployment, with government grants specifically targeting industrial hydrogen supply chains and infrastructure development.

Which major energy companies and industrial giants are backing or partnering with these startups?

Global energy majors and industrial corporations have formed strategic partnerships spanning the entire hydrogen value chain, from production equipment to end-use applications.

BP stands out with investments in both Electric Hydrogen and Hysata, totaling over $491 million combined. Their strategy targets vertical integration from renewable electricity generation to hydrogen production for industrial customers. Royal Vopak partnered with Hydrogenious LOHC in a joint venture for global LOHC supply chain development, leveraging Vopak's terminal infrastructure for hydrogen storage and distribution.

Automotive and mobility partnerships focus on hydrogen fuel applications: United Airlines invested in Electric Hydrogen for sustainable aviation fuel production, while Kia Motors backed HiiROC for potential fuel cell vehicle integration. Centrica's investment in HiiROC aligns with their energy transition strategy and UK hydrogen infrastructure development.

Steel and heavy industry partnerships target decarbonization: Nippon Steel Trading leads Hystar's funding for hydrogen-based steel production. Bosch partnered with Hydrogenious LOHC for SOFC (Solid Oxide Fuel Cell) integration, combining hydrogen storage with power generation systems. Chemical giants Covestro invested in Hydrogenious LOHC for potential hydrogen feedstock applications in polymer production.

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Industrial gas and chemical companies show increasing interest: Yara signed offtake agreements with Lhyfe for green ammonia production, while Associated British Ports partnered with HiiROC at Saltend Chemicals Park for 10 tons H₂/day production with full UK Low Carbon Hydrogen Standard certification.

Which startups have won significant awards and industry recognition?

Industry recognition patterns reveal that government certification, international awards, and inclusion in prestigious rankings validate both technical capabilities and commercial readiness.

Hydrogenious LOHC and Lhyfe both received TIME's "World's Top GreenTech Companies of 2025" designation, highlighting their breakthrough technologies and market impact. Hydrogenious also secured IPCEI (Important Projects of Common European Interest) designation for their flagship Green Hydrogen @ Blue Danube project, indicating EU-level strategic importance.

HiiROC achieved UK Low Carbon Hydrogen Standard certification for their Saltend facility, the first thermal plasma electrolysis system to meet these stringent requirements. They were also shortlisted for World Hydrogen Awards 2025 in the Clean Project category, recognizing their dual-revenue model from hydrogen and carbon black production.

Electric Hydrogen received BNEF Pioneer designation in 2024 and finalist status for Energy Transition Impact Awards 2025 in the Clean Industry category. Their unicorn valuation and backing from Microsoft Climate Innovation Fund demonstrates both technical and commercial validation. Hysata was named among Top 30 Startups by StartUs Insights and reached finalist status for Energy Transition Impact Awards in the Mobility category.

Hystar's technology leadership was recognized through finalist status for World Hydrogen Awards 2025 in the Future Leader category, specifically highlighting their ultra-thin membrane breakthrough. These awards indicate that recognition comes from proven technical advantages, successful pilot deployments, and strategic partnership validation rather than just funding levels.

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What notable R&D breakthroughs were achieved in 2024, and what's expected in 2026?

The 2024 breakthroughs center on efficiency improvements, manufacturing scale-up, and commercial demonstration, with 2026 targets focusing on gigawatt-scale deployment and cost parity with conventional hydrogen.

Hystar achieved the most significant technical breakthrough with >3 A/cm² current density using 90% thinner membranes while maintaining >5 years expected durability. This represents a 300% improvement in power density compared to conventional PEM electrolyzers. Their 2026 target involves scaling to 1.5 GW/year manufacturing capacity through Project Sagitta.

HiiROC demonstrated 80% lower power consumption versus water electrolysis through their thermal plasma electrolysis process, while scaling from 1 MW pilot to multi-megawatt commercial plants. By 2026, they expect to achieve carbon black byproduct revenues that offset 40-60% of hydrogen production costs.

Hydrogenious LOHC piloted their industrial LOHC hydrogenation plant at Chempark Dormagen, proving commercial-scale hydrogen storage at 1,800 tons H₂/year capacity. Their 2026 breakthrough target involves on-site dehydrogenation systems that eliminate hydrogen transport requirements for end users.

Hysata's capillary-fed technology achieved 41.5 kWh/kg H₂ efficiency in 2024, approaching their 95% efficiency target. Electric Hydrogen demonstrated net-zero Scope 1-2 emissions across their manufacturing process. By 2026, the industry expects at least three startups to achieve hydrogen production costs below $2/kg at industrial scale, triggering widespread commercial adoption.

Which production technologies are being developed by leading players?

Four distinct technology approaches dominate, each targeting specific market segments and addressing different hydrogen production, storage, or transport challenges.

Where are these startups based, and which regions are emerging as innovation hubs?

Europe dominates with four of the six leading startups, reflecting strong government support, industrial partnerships, and established renewable energy infrastructure.

Germany leads through Hydrogenious LOHC in Erlangen, part of Bavaria's LOHC core-grid network that's developing integrated hydrogen storage and transport infrastructure. The German government's €72.5 million grant demonstrates national commitment to hydrogen leadership. Norway hosts Hystar near Oslo, leveraging abundant renewable electricity and industrial partnerships with Nippon Steel Trading and Eni.

The UK's HiiROC operates from Hull-Saltend, benefiting from the UK's Hydrogen Power Business Model and established chemical industry infrastructure at Saltend Chemicals Park. France positions Lhyfe in Nantes with expansion across Germany, Sweden, and Belgium, supported by €149 million in French government funding and EU IPCEI designation.

North America's representation comes through Electric Hydrogen in Cambridge and Devens, Massachusetts, capitalizing on proximity to MIT research, established manufacturing infrastructure, and backing from major US corporations like Microsoft and United Airlines. Australia's Hysata operates from Wollongong, NSW, with production sites in Mid-West Western Australia for the Murchison project.

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Emerging hubs include Middle East/North Africa collaborations through Hy24 fund projects in Namibia and Oman, targeting export markets. Canada and Japan show increasing activity through partnerships with Australian and European startups, particularly for large-scale project development and technology transfer.

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What was the total global investment in green hydrogen startups in 2024 and early 2025?

Global hydrogen startup equity funding reached $3.7 billion in 2023, with 2024 showing continued growth despite broader cleantech funding declines.

Electrolyzer project investments specifically totaled $3.5 billion in 2023, representing a 350% year-over-year increase. The International Energy Agency projects this could reach $8 billion globally in 2025 based on announced projects and funding commitments. Startup equity funding diversified significantly in 2024, with more investors entering the market and larger average deal sizes.

The six leading startups alone secured over $1.3 billion in combined funding during 2024-25: Hysata ($925M including government programs), Electric Hydrogen ($380M), Lhyfe (€213M), Hydrogenious LOHC (€89.5M), HiiROC (£28M), and Hystar ($36M). This represents approximately 35% of total sector funding concentrated in these breakthrough technology companies.

Government funding became increasingly significant, with programs like ARENA's Hydrogen Headstart (AU$814M to Hysata), German IPCEI projects (€72.5M to Hydrogenious), and French government grants (€149M to Lhyfe) totaling over $1 billion in public investment. Debt financing also emerged as major funding source, with Lhyfe securing €53 million from traditional banks for production facility development.

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What is the projected investment and market expansion for 2026?

Annual funding is projected to exceed $10-15 billion by 2026 to maintain trajectory toward Net-Zero Emissions by 2050, representing a 300-400% increase from 2024 levels.

The Hydrogen Council reports $75 billion in committed capital globally, but climate targets require accelerated deployment to avoid project delays. BloombergNEF analysis indicates that proven technology focus in 2024 investment patterns will continue, with electrolyzer manufacturing and industrial applications receiving priority funding.

Manufacturing scale-up drives much of the projected investment: Electric Hydrogen's 1.2 GW/year gigafactory represents the template for required industrial capacity. Hystar's Project Sagitta targets 4.5 GW/year by 2031, requiring estimated $2-3 billion in manufacturing infrastructure investment. Multiple startups are expected to announce gigawatt-scale facilities in 2025-26.

Government programs will likely match private investment dollar-for-dollar: the EU's IPCEI hydrogen projects total €5.4 billion in public funding, while the US Inflation Reduction Act hydrogen production tax credits could trigger $15-20 billion in private investment by 2026. Australia's Hydrogen Headstart program represents just the first tranche of anticipated AU$2+ billion in public support.

Commercial deployment accelerates with industrial offtake agreements: Yara's green ammonia contracts, United Airlines' sustainable aviation fuel agreements, and steel industry partnerships indicate demand-driven investment rather than speculative funding, reducing investment risk and enabling debt financing for production facilities.

Which startups are generating revenue and signing commercial agreements?

Four of the six leading startups have transitioned from development to commercial revenue generation through industrial supply contracts, equipment sales, and offtake agreements.

Lhyfe leads commercial deployment with 22 MW commissioned capacity by end-2024 and quadrupled revenues in 2024. They secured final investment decisions for 5 MW Croixrault and 10 MW Le Cheylas plants, with six projects under construction. Their commercial agreements include Yara for green ammonia production and Masdar for European market expansion.

HiiROC operates a commercial 10 tons H₂/day facility at Saltend Chemicals Park with full UK Low Carbon Hydrogen Standard certification, supplying Associated British Ports. Their dual-revenue model generates income from both hydrogen sales and carbon black byproduct sales to tire and plastics manufacturers.

Electric Hydrogen began commercial deliveries of their HYPRPlant systems in 2024, with United Airlines signing agreements for sustainable aviation fuel production. Their modular approach enables faster deployment and revenue recognition compared to traditional project development timelines.

Hydrogenious LOHC operates commercial LOHC storage and transport services through their partnership with Royal Vopak, generating revenue from hydrogen logistics rather than just production. Hysata and Hystar remain in pre-commercial phases but have signed letters of intent and memorandums of understanding for 2025-26 commercial deployments.

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The transition to commercial operations indicates that green hydrogen has moved beyond pilot projects to industrial-scale deployment, with customers willing to pay premium prices for certified green hydrogen to meet their own decarbonization commitments.

Conclusion

Sources

1. Hydrogen Wire - Hydrogenious funding
2. Hydrogenious LOHC - IPCEI grant announcement
3. Carbon Credits - Top hydrogen startups
4. Elcogen - TIME GreenTech recognition
5. Fundz - Hysata Series B funding
6. World Hydrogen Summit - Awards finalists
7. Hysata - Series B announcement
8. Hysata - ARENA Hydrogen Headstart
9. Lhyfe - French government subsidy
10. Lhyfe - Debt financing announcement
11. Energy News Pro - Lhyfe Sweden funding
12. Renewable Energy Magazine - Lhyfe grant
13. Hydrogen Europe Quarterly
14. IEA - Global Hydrogen Review 2024
15. Euro Metal - Hydrogen investment projections